1. Outrage in US over AIG – Benranke called it most upsetting event in the crisis, outrage on AIG bonuses.
The real question is, who is actually being bailed out by bailing out AIG? Essentially the counter-parties. The details are here from Econobrowser.

About

08 November 2008
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It’s 08Nov08 today. The financial crisis, which started with housing meltdown in US, has unfolded itself massively on global scale. This diary is an attempt to present the events as and when they happen from now onwards. I will try to keep it as factual as possible and looking to update it at least once in a week.
I am not an economist, so hoping to get layman’s common sense perspective on events of the crisis.
Crisis Diary as it unfolds …